California, which legalized recreational cannabis in 2016, has seen its legal dispensaries struggle to compete with the black market.

California Gov. Gavin Newsom has approved a new law allowing Amsterdam-style cannabis cafes to operate in the Golden State.

Marijuana businesses will be allowed to serve food and have live music performances as a way to attract more customers.

California Gov. Gavin Newsom signed Assembly Bill 1775, authored by Asm. Matt Haney (D–San Francisco), to legalize the cafes. The big picture: Under AB 1775, cannabis dispensaries will now be allowed to sell non-cannabis-infused food.

Gov. Gavin Newsom signed a bill into law Monday that will allow “Amsterdam-style” cannabis cafes starting next year, the bill’s author said. The law allows businesses to sell non-cannabis food and drinks and sell tickets to concerts and other performances.

Cities will be able to issue permits that allow cannabis dispensaries to host live performances and serve hot food and nonalcoholic drinks.

Starting next year, diners in the western US state of California can smoke cannabis at certain restaurants, thanks to a new law allowing for "cannabis cafes" akin to those popularized in the Netherlands.

California law already allows people to smoke weed inside licensed cannabis lounges but bans the businesses from selling food. Newsom signed the bill shortly after a handful of celebrities, including Whoopi Goldberg, Woody Harrelson and Bill Maher, urged him to do so.

Cannabis cafes offering food, coffee and live entertainment will soon become reality in California, after Gov. Gavin Newsom signed a bill legalizing the establishments popularized in Amsterdam.

Your cannabis purchase may soon come with a side of fresh food and live music, after Gov. Gavin Newsom signed legislation Tuesday legalizing Amsterdam-style cannabis cafes. Under the new law, local jurisdictions can permit licensed cannabis retailers to prepare and serve food and drinks and host live performances on site.